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Author Question: Which of the following statements regarding arbitrage and security prices is INCORRECT? (Read 68 times)

JMatthes

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on: Jul 9, 2019
Which of the following statements regarding arbitrage and security prices is INCORRECT?
◦ In financial markets it is possible to sell a security you do not own by doing a short sale.
◦ When a bond is underpriced, the arbitrage strategy involves selling the bond and investing some of the proceeds.
◦ We call the price of a security in a normal market the no-arbitrage price for the security.
◦ The general formula for the no-arbitrage price of a security is Price(security) = PV(all cash flows paid by the security).
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
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Marked as best answer by JMatthes on Jul 9, 2019

guyanai

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Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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JMatthes

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Reply 2 on: Jul 9, 2019
Great answer, keep it coming :)

gcook

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Reply 3 on: Yesterday
Excellent

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